2- 1

Lecture 2: Describing Data I

GOALS
ONE Organize data into a frequency distribution. TWO Portray a frequency distribution in a histogram, frequency polygon, and cumulative frequency polygon. THREE Develop a stem-and-leaf display. FOUR Present data using such graphic techniques as line charts, bar charts, and pie charts.

2- 2

EXAMPLE 1
Dr. Jame is Dean of the School of Business National University. He wishes prepare to a report showing the number of hours per week students spend studying. He selects a random sample of 30 students and determines the number of hours each student studied last week. 15.0, 23.7, 19.7, 15.4, 18.3, 23.0, 14.2, 20.8, 13.5, 20.7, 17.4, 18.6, 12.9, 20.3, 13.7, 21.4, 18.3, 29.8, 17.1, 18.9, 10.3, 26.1, 15.7, 14.0, 17.8, 33.8, 23.2, 12.9, 27.1, 16.6.

2- 3

Frequency Distribution
A Frequency distribution is a grouping of data into mutually exclusive categories showing the number of observations in each class.

2- 4

Example 1 continued
Estimate the number of classes. There are 30 observations. 2>30.We should have at least 5 classes. Find Range ( R ) to determine class width The range is 23.5 hours. Choose an interval of 5 hours. Set the first lower limit. The lower limit of the first class is 7.5 hours. Count the number of values in each class and fill in the table.

2- 5

Example 1 continued
Hours 7.5 up to 12.5 12.5 up to 17.5 17.5 up to 22.5 22.5 up to 27.5 27.5 up to 32.5 32.5 up to 37.5 Total Frequency (f) 1 12 10 5 1 1 30

2- 6

Frequency Distribution Terminology

Class midpoint: A point that divides a class into two equal parts. This is the average of the upper and lower class limits. Class frequency: The number of observations in each class. Class interval: The class interval is obtained by subtracting the lower limit of a class from the lower limit of the next class.

2- 7

Example 1 continued
A relative frequency distribution shows the proportion of observations in each class.

2- 8

Relative Frequency Distribution

Hours 7.5 up to 12.5 12.5 up to 17.5 17.5 up to 22.5 22.5 up to 27.5 27.5 up to 32.5 32.5 up to 37.5 Total Frequency (f) 1 12 10 5 1 1 30 Relative Frequency 1/30 = 0.0333 12/30 = 0.4000 10/30 = 0.3330 5/30 = 0.1667 1/30 = 0.0333 1/30 = 0.0333 30/30 = 1.0000

2- 9

EXAMPLE 2
Colin achieved the following scores on his twelve accounting quizzes this semester: 86, 79, 92, 84, 69, 88, 91, 83, 96, 78, 82, 85. Organize this data to show its distribution.
69, 78, 79, 82, 83, 84, 85, 86, 88, 91, 92, 96 12 data, so recommend at least 4 classes Range = 96-69 = 27. Class width = 7 66-73, 73-80, 80- 87, 87-94, 94-101

2- 10

Stem-andStem-and-leaf Displays
Stem-and-leaf display: A statistical technique for displaying a set of data. Each numerical value is divided into two parts: the leading digits become the stem and the trailing digits the leaf. Note: an advantage of the stem-and-leaf display over a frequency distribution is we do not lose the identity of each observation.

2- 11

Example 2 continued
stem 6 7 8 9 lea 9 89 234568 126

2- 12

Graphic Presentation of a Frequency Distribution

The three commonly used graphic forms are histograms, frequency polygons, and a cumulative frequency distribution. A Histogram is a graph in which the classes are marked on the horizontal axis and the class frequencies on the vertical axis. The class frequencies are represented by the heights of the bars and the bars are drawn adjacent to each other.

2- 13

Graphic Presentation of a Frequency Distribution

A frequency polygon consists of line segments connecting the points formed by the class midpoint and the class frequency.

A cumulative frequency distribution is used to determine how many or what proportion of the data values are below or above a certain value.

2- 14

Histogram for Hours Spent Studying

14 12 requency 10 8 6 4 2 0 10 15 20 25 30 35

Hours spent studying

2- 15

Frequency Polygon for Hours Spent Studying

14 12 10 8 6 Fr 4 2 0 10 15 H r 20 25 t t y 30 35 y

2- 16

Cumulative Frequency Distribution for Hours Studying

35 30 25 20 re ue cy 15 10 5 0 10 15 20 Hours 25 e t tudyi 30 35

2- 17

Other Graphic Presentations of Data

Line chart is useful for showing the trends of the data over time. Bar Chart is useful for displaying the difference between group of data. Pie chart is useful for displaying a relative frequency distribution among group of data.

2- 18

Example 3
Construct a graphical presentation for the number of unemployed per 100,000 population for selected cities during 2001.

2- 19

Example3 Example3
Cities Atlanta, GA Boston, MA Chicago, IL Los Angeles, CA New York, NY Washington, D.C. Number of Unemployed per 100, 000 population 7,300 5,400 6,700 8,900 8,200 8,900

2- 20

Bar Chart for the Unemployment Data

10000 8000 6000 4000 2000 0 1 2 3 4 5 6 Cities 7300 5400 6700 Atl ta Boston Chi ago Los Angeles New York Washington 8900 8900

# unemployed/100,000

8200

2- 21

EXAMPLE 4
A sample of 200 runners were asked to indicate their favorite type of running shoe. Draw a graphical presentation for this data.
Types of Shoe Nike Adidas Reebok Asics Other The number of runners 92 49 37 13 9

2- 22

Pie Chart for Running Shoes

ok

Asi s Other Nike A i as Reebok Asi s Other Nik

A i as

2- 23

Exercises
AIN is a leader the in logistic business. The following data is its annual report for primary net income per common share for years 1999 to 2004.
1999 $0.50 2000 $0.62 2001 $1.03 2002 $1.37 2003 $1.34

What kind of graphical tool should be used to present this data?

Line Graph

2- 24

Exercises
The following information report the companys consumer sales (in millions) by region.
Region Americas Europe Asian/Pacific Sales 574.50 486.70 86.10

What kind of graphical tool should be used to present this data? Bar Chart or Pie Chart

2- 25

Exercises
Based on the previous exercise, which graphical tool between bar chart and pie chart is better describes the relative proportion of the total sales?

Pie Chart

2- 26

Homework
Chapter 2: Problems: 10, 12, 14, 27, 28, and 48 Chapter 4: Problems: 8